Tribes Earned $23 Billion from Gambling in 2005

Tribes Earned $23 Billion from Gambling in 2005
30 states have Indian gaming, whereas only 11 states have commercial gambling

Gambling revenue at American Indian casinos rose more than 15 percent to nearly $23 billion last year, narrowing the gap with commercial casinos in Nevada and other states, according to a study released Tuesday.

Growth is driven by gambling's increasing popularity, the introduction of new casinos and games, and more non-gambling attractions at the resorts, according to the report by Alan Meister, an economist with the Analysis Group.

U.S. Indian gaming is now more than three-quarters the size of its commercial non-Indian counterpart, up from two-thirds in 2004 and 50 percent in 2001.

Thirty states have tribal casinos, while just 11 states have allowed commercial casinos. Recent legislation legalizing commercial gambling in states like Pennsylvania and Florida is likely to raise that total.

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Last year, California again had the highest tribal casino revenue, followed by Connecticut, Arizona, Oklahoma and Minnesota. The top two states accounted for nearly 42 percent of total tribal gambling revenue.

There were 227 tribes operating 420 gaming facilities in 30 states last year, according to the report.

Last year's 15.6 growth rate for Indian gaming surpassed the 14.6 percent rate seen in 2004.

It also continued to outstrip growth at commercial casinos and racetracks with slot machines, which saw combined gambling revenue, including hurricane-related losses in Louisiana and Mississippi, rise 5.2 percent to $32.7 billion last year, according to the report.

The strongest growth was seen in electronic bingo-style machines, called Class II, which are popular in states that do not allow Las Vegas-style slots.

"The future of Indian gaming as a whole remains bright," Meister said in the report. "While proposed legislative and regulatory changes could negatively impact new gaming land acquisitions and Class II gaming, they are not likely to slow down growth from existing Class III (slot machine) gaming."

Total tax revenue from Indian gaming was $6.9 billion in 2005, the report said. When factoring in revenue sharing of $913 million, the gross fiscal impact to state and local governments was $8 billion.

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